UPDATE
REPORT ON THE STATUS OF THE DOJ & CD MMT PPP
Presented to the JCPS Portfolio Committee
6 March 2007
Overview
The Committee
was presented with comprehensive documentation on 31 January 2006. This report
serves to present an overview and update on the progression of the MMT PPP.
The MMT PPP has been progressed in certain respects including:
·
The preparation of a set of Annual Financial Statements for MMT for the
full 2005/06 year for all but 47 courts. This is the first set of AFS prepared
for a full year by the DoJ & CD. An unaudited set of these AFS is attached.
·
The acquisition, via a tender process, of the E4SE Project Management
package to facilitate the tracking and management of the implementation of the
MMT PPP at all user sites (all courts & other sites such as Masters Offices
etc) - Complete.
·
Updating records at a court level and the capture of manual information
on maintenance obligors and beneficiaries at individual courts to an electronic
spreadsheet template for uploading to the E4SE Project Management suite of
programs that has the capacity to export the data to any of the short listed
bidders - Some 40% of all court sites are complete with the balance being work
in progress but on track for completion before a preferred bidder's developed
system is ready for implementation at individual user sites.
·
The acquisition of computer hardware for user sites with a minimum
allocation of two computers and two printers together with LAN cabling etc -
Complete.
·
The migration from a manual record keeping system at courts to the JDAS 4
version of the electronic system that is to be further developed by the
preferred bidder to JDAS version 5 ( version 5 will
have the functionality to enable national report writing via a central database
etc) - 5% Complete / Those that are not migrated to JDAS version 4 will be
migrated directly to JDAS version 5.
·
The implementation of an electronic funds transfer option to maintenance
beneficiaries at 55 courts where we have assisted 9319 beneficiaries to open
bank accounts so that they can receive payments directly into their bank
accounts. This means that they do not have to come to court to receive payment.
In total, between 1 April 2006 to 20 February 2007, we have paid R24 107 734.46
to these beneficiaries. - Further court conversions are work in progress.
·
The training of trainers for each court area in the country on the MMT
PPP initial conversion phases ( MMT PPP conceptual
framework, data record scanning & migration, banking systems and EFT
payment conversion requirements).
·
The briefing and appointment of the Technical, legal, Finance and BEE MMT
PPP evaluation sub-committees.
·
The receipt of tender documentation on 5 February 2007 that was issued on
6 October 2006 from four of the six short listed bidders.
·
Tender bids were received from:
−
The First National Bank Consortium
−
The Standard Bank Consortium
−
The Ubulungisa Consortium ( ABSA
etc)
−
The Umusa Consortium ( Blue label etc)
·
Tender bids were not submitted by:
−
The Nedbank Consortium
−
The Thebe Consortium
·
The evaluation process of the MMT PPP bids is work in progress.
Output
Specifications of the New Operating Model
The
output specifications of the project include the following:
·
Produce annual financial statements on each Monies in Trust type;
·
Provide a financial management systems solution and manage Monies in
Trust within a sound system of financial management in such a manner that it
achieves an unqualified audit report from the Auditor-General; Ensure service
quality;
·
Enable the DoJ & CD to access financial information relating to each
case of Monies in Trust;
·
Accept trust money paid-in in a convenient, safe & controlled manner;
·
Keep trust money safe;
·
Pay trust money out according to the DoJ & CD's authorised
instructions to the correct party in a convenient, safe & controlled
manner;
·
A central Data Integration Management System;
·
A central and decentralized data back-up system;
·
Banking Services;
·
Cash Management in support of the DoJ & CD Treasury Processes;
·
Cash in Transit services where required until total cash handling is
phased-out;
·
Accreditation Management of Receiving and Payment Sub-contractors Mobile
Payment Units where necessary;
·
Banking Cash Hall Services at 12 identified Mega Courts;
·
Provide a choice and free channel to beneficiaries for receiving their
monies;
·
Centralised Cheque and Postal Order Banking Collection Services;
·
Employer Payment Integration (Maintenance);
·
Upgraded Justice Deposit Account System (JDAS) software for use at office
level for administrative functions;
·
Provide training on the aforementioned to departmental train-the-trainers;
·
Provide call centre services to the public as well as internal clients;
·
Second staff to a Project Management Office for the duration of the
contract;
·
Change Management and Communications Campaign;
·
Provide a Banking Trust System in respect of Master's Offices.
Next
Phase
The
next phase of the project will concentrate on maintenance as this is where the
biggest positive impact of service delivery will be visible. Bidders are
expected to propose a secure system whereby maintenance payments will be
received directly from obligors into a central facility by electronic means or
by cheques, postal order or cash and that these monies will then be disbursed
directly to beneficiaries in a secure manner, either by way of depositing the
monies into their bank accounts (for which the department, in certain instances
will carry the banking costs for the first deposit and withdrawal per month) or
by way of cash (if the beneficiary prefers this option) at a facility or
sub-contractor of the private party within a five kilometer radius from where
they currently receive their monies.
Funding Envelope
The Department has a funding envelope of R 100 million per financial year
(this funding envelope will, if necessary be increased by the annual
inflationary increases granted by National Treasury).
Expected Timeframes for the Implementation of the New System
The evaluation of the tender bids has commenced and after the due processes
attached to a PPP have been followed, signing of an agreement with the
successful bidder is envisaged to occur before the end of September 2007. The
system is expected to be developed by December 2007 and the piloting of the
system at selected centres is expected to be finalised by end of March 2008.
Full implementation of the new system is envisaged to take place before end of
June 2008.
Alan Mackenzie
28 February 2007
Annexure 1 : Photo of three of the four tender bids
received Attached: Unaudited MMT AFS